(1) In general.— The Secretary may make grants and enter into contracts, cooperative agreements, and other agreements for research, development, demonstration, and deployment projects, and evaluation of research and technology of national significance to public transportation, that the Secretary determines will improve public transportation.

(2) Agreements.— In order to carry out paragraph (1), the Secretary may make grants to and enter into contracts, cooperative agreements, and other agreements with—

(A)departments, agencies, and instrumentalities of the Government, including Federal laboratories;

(B)State and local governmental entities;

(C)providers of public transportation;

(D)private or non-profit organizations;

(E)institutions of higher education; and

(F)technical and community colleges.

(3) Application.—

(A) In general.— To receive a grant, contract, cooperative agreement, or other agreement under this section, an entity described in paragraph (2) shall submit an application to the Secretary.

(B) Form and contents.— An application under subparagraph (A) shall be in such form and contain such information as the Secretary may require, including—

(i)a statement of purpose detailing the need being addressed;

(ii)the short- and long-term goals of the project, including opportunities for future innovation and development, the potential for deployment, and benefits to riders and public transportation; and

(iii)the short- and long-term funding requirements to complete the project and any future objectives of the project.

(b) Research.—

(1) In general.— The Secretary may make a grant to or enter into a contract, cooperative agreement, or other agreement under this section with an entity described in subsection (a)(2) to carry out a public transportation research project that has as its ultimate goal the development and deployment of new and innovative ideas, practices, and approaches.

(N)any other area that the Secretary determines is important to advance the interests of public transportation.

(c) Innovation and Development.—

(1) In general.— The Secretary may make a grant to or enter into a contract, cooperative agreement, or other agreement under this section with an entity described in subsection (a)(2) to carry out a public transportation innovation and development project that seeks to improve public transportation systems nationwide in order to provide more efficient and effective delivery of public transportation services, including through technology and technological capacity improvements.

(2) Project eligibility.— A public transportation innovation and development project that receives assistance under paragraph (1) shall focus on—

(A)the development of public transportation research projects that received assistance under subsection (b) that the Secretary determines were successful;

(B)planning and forecasting modeling and simulation;

(C)capital and operating efficiencies;

(D)advanced vehicle design;

(E)advancements in vehicle technology;

(F)the environment and energy efficiency;

(G)system capacity, including train control and capacity improvements; or

(H)any other area that the Secretary determines is important to advance the interests of public transportation.

(d) Demonstration, Deployment, and Evaluation.—

(1) In general.— The Secretary may, under terms and conditions that the Secretary prescribes, make a grant to or enter into a contract, cooperative agreement, or other agreement with an entity described in paragraph (2) to promote the early deployment and demonstration of innovation in public transportation that has broad applicability.

(2) Participants.— An entity described in this paragraph is—

(A)an entity described in subsection (a)(2); or

(B)a consortium of entities described in subsection (a)(2), including a provider of public transportation, that will share the costs, risks, and rewards of early deployment and demonstration of innovation.

(3) Project eligibility.— A project that receives assistance under paragraph (1) shall seek to build on successful research, innovation, and development efforts to facilitate—

(A)the deployment of research and technology development resulting from private efforts or Federally funded efforts; and

(B)the implementation of research and technology development to advance the interests of public transportation.

(4) Evaluation.— Not later than 2 years after the date on which a project receives assistance under paragraph (1), the Secretary shall conduct a comprehensive evaluation of the success or failure of the projects funded under this subsection and any plan for broad-based implementation of the innovation promoted by successful projects.

(5) Low or no emission vehicle deployment.—

(A) Definitions.— In this paragraph, the following definitions shall apply:

(i) Eligible area.— The term “eligible area” means an area that is—

(I)designated as a nonattainment area for ozone or carbon monoxide under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)); or

(II)a maintenance area, as defined in section
5303, for ozone or carbon monoxide.
“(ii) Eligible project.—The term “eligible project” means a project or program of projects in an eligible area for—

(I)acquiring or leasing low or no emission vehicles;

(II)constructing or leasing facilities and related equipment for low or no emission vehicles;

(III)constructing new public transportation facilities to accommodate low or no emission vehicles; or

(IV)rehabilitating or improving existing public transportation facilities to accommodate low or no emission vehicles.

(iii) Direct carbon emissions.— The term “direct carbon emissions” means the quantity of direct greenhouse gas emissions from a vehicle, as determined by the Administrator of the Environmental Protection Agency.

(iv) Low or no emission bus.— The term “low or no emission bus” means a bus that is a low or no emission vehicle.

(v) Low or no emission vehicle.— The term “low or no emission vehicle” means—

(I)a passenger vehicle used to provide public transportation that the Administrator of the Environmental Protection Agency has certified sufficiently reduces energy consumption or reduces harmful emissions, including direct carbon emissions, when compared to a comparable standard vehicle; or

(II)a zero emission bus used to provide public transportation.

(vi) Recipient.— The term “recipient” means—

(I)for an eligible area that is an urbanized area with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census, the State in which the eligible area is located; and

(II)for an eligible area not described in subparagraph (A), the designated recipient for the eligible area.

(vii) Zero emission bus.— The term “zero emission bus” means a low or no emission bus that produces no carbon or particulate matter.

(B) Authority.— The Secretary may make grants to recipients to finance eligible projects under this paragraph.

(C) Grant requirements.—

(i) In general.— A grant under this paragraph shall be subject to the requirements of section
5307.

(ii) Government share of costs for certain projects.— Section
5323(j) applies to projects carried out under this paragraph, unless the grant recipient requests a lower grant percentage.

(iii) Combination of funding sources.—

(I) Combination permitted.— A project carried out under this paragraph may receive funding under section
5307, or any other provision of law.

(II) Government share.— Nothing in this clause may be construed to alter the Government share required under this section, section
5307, or any other provision of law.

(D) Minimum amounts.— Of amounts made available by or appropriated under section
5338(b) in each fiscal year to carry out this paragraph—

(i)not less than 65 percent shall be made available to fund eligible projects relating to low or no emission buses; and

(ii)not less than 10 percent shall be made available for eligible projects relating to facilities and related equipment for low or no emission buses.

(E) Competitive process.— The Secretary shall solicit grant applications and make grants for eligible projects on a competitive basis.

(F) Priority consideration.— In making grants under this paragraph, the Secretary shall give priority to projects relating to low or no emission buses that make greater reductions in energy consumption and harmful emissions, including direct carbon emissions, than comparable standard buses or other low or no emission buses.

(G) Availability of funds.— Any amounts made available or appropriated to carry out this paragraph—

(i)shall remain available to an eligible project for 2 years after the fiscal year for which the amount is made available or appropriated; and

(ii)that remain unobligated at the end of the period described in clause (i) shall be added to the amount made available to an eligible project in the following fiscal year.

(e) Annual Report on Research.— Not later than the first Monday in February of each year, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure, the Committee on Science, Space, and Technology, and the Committee on Appropriations of the House of Representatives a report that includes—

(1)a description of each project that received assistance under this section during the preceding fiscal year;

(2)an evaluation of each project described in paragraph (1), including any evaluation conducted under subsection (d)(4) for the preceding fiscal year; and

(3)a proposal for allocations of amounts for assistance under this section for the subsequent fiscal year.

(f) Government Share of Costs.—

(1) In general.— The Government share of the cost of a project carried out under this section shall not exceed 80 percent.

(2) Non-government share.— The non-Government share of the cost of a project carried out under this section may be derived from in-kind contributions.

(3) Financial benefit.— If the Secretary determines that there would be a clear and direct financial benefit to an entity under a grant, contract, cooperative agreement, or other agreement under this section, the Secretary shall establish a Government share of the costs of the project to be carried out under the grant, contract, cooperative agreement, or other agreement that is consistent with the benefit.

In subsections (a) and (b)(1), the words “(or the Secretary of Housing and Urban Development when required by section
5334(i) of this title)” are added for clarity.

In subsection (a), the word “working” is omitted as surplus. The words “departments, agencies, and instrumentalities of the United States Government” are substituted for “other Federal departments and agencies” for consistency in the revised title and with other titles of the United States Code. The words “all phases of”, “(including the development, testing, and demonstration of new facilities, equipment, techniques, and methods)”, “In carrying out the provisions of this section”, “or data as he deems”, “public or private”, and “contained . . . section
1701d–3 of title
12 or . . . other provision of” are omitted as surplus.

In subsection (b)(1), before clause (A), the words “public and private”, “assist in establishing or carrying on comprehensive research in the problems of transportation in urban areas. Such grants shall be used to”, and “and qualified” are omitted as surplus. In clause (A), the words “or both” are omitted as surplus.

In subsection (b)(3), the word “appropriate” is added for clarity.

In subsection (c)(1), the words “and agencies thereof” are omitted as surplus.

In subsection (c)(3), before clause (A), the words “public or private training” and “the sum of” are omitted as surplus. In clause (B), the words “in connection with the fellowship” are omitted as surplus.

Subsec. (a). Pub. L. 109–59, § 3014(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “The Secretary of Transportation (or the Secretary of Housing and Urban Development when required by section
5334(i) of this title) may undertake, or make grants or contracts (including agreements with departments, agencies, and instrumentalities of the United States Government) for, research, development, and demonstration projects related to urban mass transportation that the Secretary decides will help reduce urban transportation needs, improve mass transportation service, or help mass transportation service meet the total urban transportation needs at a minimum cost. The Secretary may request and receive appropriate information from any source. This subsection does not limit the authority of the Secretary under another law.”

Subsec. (b). Pub. L. 109–59, § 3014(b), redesignatedsubsec. (d) as (b) and struck out former subsec. (b) which related to grants to nonprofit institutions of higher learning for research, investigations, and training.

Subsec. (c). Pub. L. 109–59, § 3014(b), redesignatedsubsec. (e) as (c) and struck out former subsec. (c) which related to grants to States, local governmental authorities, and operators of mass transportation systems for training fellowships and grants to State and local governmental authorities for projects that would use innovative techniques and methods in managing and providing mass transportation.